LatinNews Daily Report - 08 October 2013

ECONOMY | US Supreme Court omits holdout case. On 7 October the US Supreme Court omitted from its latest to-do list an appeal presented by Argentina against a New York Appeals Court ruling favouring the holders of defaulted 2001 Argentine government bonds, which rejected debt swaps offered by the Argentina and continue to demand full payment of their bonds. The supreme court’s decision means that the issue will continue to be processed on the US Appeals Courts Circuit, where Argentina is challenging the ruling on the grounds that it sets a negative precedent for debt swaps carried out by other countries. The longer the case drags on, the more damaging it becomes for the government led by President Cristina Fernández, as uncertainty grows over whether Argentina might be forced to pay the so-called ‘holdouts’, in which case it could be forced into a technical default given its declared inability to foot the US$1.3bn bill.